Colliers Queensland experts Troy Linnane, Brendan Hogan, Sam Arkell and Marshall Smith have been exclusively appointed to sell a 100% freehold interest in Terrace Office Park at 527 Gregory Terrace, Fortitude Valley, via an Expressions of Interest campaign on behalf of the vendor.
The substantial office complex has existing development approval for 641 apartments across two towers has hit the market, offering investors and developers a rare opportunity to secure a large inner-city landholding in the heart of Brisbane’s Olympic precinct.
The 7,003m2 site comprises two commercial office buildings providing a net lettable area of 7,375m2, 175 car parks, currently with an 80% occupancy rate, net passing annual income forecast at $3.09m and potential fully leased net annual income of $4.12m.
Troy stated that the property’s position within the heart of the Olympic precinct will be a major drawcard for developers given the significant infrastructure investment taking place within a one-kilometre radius of the property over the next five years.
“This is a genuine front-row seat to Brisbane’s Olympic precinct. The site is adjacent to the future Athletes Village and upgraded Arena at the RNA Showgrounds and is within walking distance to the Brisbane Olympic Stadium and National Aquatic Centre, while also benefiting from close proximity to Exhibition Station Cross River Rail network and the Royal Brisbane Women’s Hospital.
“It is an exceptionally well-positioned and elevated gateway site that will significantly benefit from the surrounding infrastructure investment.”
Troy Linnane, Residential Development Sites Director, Colliers
The property is situated within the Bowen Hills Priority Development Area (PDA), which supports a wide variety of development outcomes and scale of development including Build to Rent and Build to Sell apartments, hotel, short-term accommodation, retirement, commercial and retail uses.
“Terrace Office Park gives investors the opportunity to acquire a substantial freehold landholding with an established diversified income today with significant upside for the future.
“Few sites offer this combination of scale, existing office income, mixed-use zoning and proximity to the infrastructure and investment being delivered across Brisbane’s Olympic precinct.”
Marshall Smith, Capital Markets Associate Director, Colliers
The office complex is anchored by a range of occupiers including Kapsch TrafficCom Australia, Bega Dairy and Drinks Services and Agri Labour Australia.
Colliers Capital Markets Associate Director Sam Arkell said Brisbane’s Fringe office market continued to outperform comparable non-CBD markets nationally, with the existing office component providing an attractive holding strategy while a purchaser considered the site’s longer-term potential.
“Importantly, this isn’t simply a land play. The existing office accommodation provides income from day one, while the staggered lease expiry profile creates an opportunity for a new owner to capture rental reversion and improve the asset’s cash flow.”
Sam Arkell, Capital Markets Associate Director, Colliers
Colliers’ believes that the residential potential was particularly compelling given Brisbane’s shortage of new apartment supply with Inner Brisbane requiring 4,000 to 5,000 apartment completions per annum ahead of the 2032 Olympics.
“With Brisbane facing a significant undersupply of new apartments, having an approved 641-unit residential scheme in a precinct about to undergo substantial gentrification is a standout proposition.”
Brendan Hogan, Residential Development Sites Director, Colliers
Terrace Office Park is approximately 500 metres from Exhibition Station, 600 metres from Fortitude Valley Station, 500 metres from the King Street dining and lifestyle precinct and is well connected to the Inner-City Bypass, Airport Link and Clem Jones Tunnel.
